The project will use BTL's cross-border settlement platform Interbit to explore the ways in which a blockchain-based settlements can reduce the friction of domestic and cross border transfers between banks. It continues the proof of concept work being done by Visa Europe Collab in the area of remittances; previously it was working with UK-based Epiphyte.

BTL splits its operation between the UK, where it is based in Level39, Canary Wharf, and Canada. A small number of European banks have been invited to participate in the project. Visa Europe Collab published a blog post about the project, which indicated participating banks will be able to connect to the network and send funds to other banks in the network across multiple currencies.

Hendrik Kleinsmiede, co-founder and Innovation Partner, Visa Europe Collab, said: "We'll work closely together on the development and implementation of the PoC, ensuring that all participants come away with new knowledge and insight into the role that the blockchain could play in interbank settlements in the future.

"For me the opportunity is a fascinating and potentially very beneficial one. Through the use of smart contracts and blockchains I believe we can create a fast, compliant and low-cost interbank payment and settlement service, with embedded regional compliance.

The PoC will deliver a first-of-its-kind blockchain-based settlement system, and we are pleased to be working with BTL to explore its implications and opportunities for our industry."

BTL CEO Guy Halford-Thompson said: "We are very excited to be working with Jon Downing and his team at Visa Europe. This is a great opportunity for forward-thinking banks to take part in a blockchain based settlement pilot backed by one of the world's leading financial institutions, and to showcase the abilities of BTL's Interbit platform."